Stress testingApril 2014 temperature check

This is the second of our monthly ‘temperature checks’ of key current topics, following on from our stress testing survey published in January.

The results are based on six of the eight banks participating in the 2014 PRA Concurrent Stress Test (CST) and they provide an interesting snapshot of the current state of play at the end of April 2014.

As the stress test gathers momentum the main concerns voiced by the participants are: the PRA has not provided clear guidance on its qualitative expectations regarding the stress testing process; the difficulty of delivering appropriate review and governance of the results within the tight timeframe allowed (despite extension of the timetable to 14 July); and, the excessively granular data required by the process.